A senior figure at a major investor in Scottish infrastructure has warned that the creditworthiness of the country’s projects is at risk if it votes for independence.

Masashi Oda, chief investment officer of Japan’s Sumitomo Mitsui Trust Bank’s equity investment department, said: “If there is a major change in the way the market works or any regulatory bodies, then that’ll cause concerns for any investors, including Japanese [ones]. If there are any changes involving currencies, that would definitely change the risk and creditworthiness of lending terms towards any Scottish project.”

SMTB is one of Japan’s largest asset managers, boasting assets under management of $474 billion. It forms part of the Mitsui Group, which includes Sumitomo Mitsui Banking Corporation and is an active player in investment initiatives in Scotland.

In 2008, SMBC invested £24 million in the Scottish Trauma Audit Group, while the following year it invested £170 million in Fife Hospital and £155 million in an upgrade of the M80 motorway.

The warning will be unwelcome to supporters of independence because a focus on infrastructure improvements has been cited as a key priority if Scotland were to separate from the rest of the UK. Just days ago Moody’s warned an independent Scotland would get a credit rating two notches below the rest of the UK, potentially pushing up borrowing costs – although rival agency Standard & Poor’s has been more upbeat.
Scottish-based financial consultancy Caledonian Economics said that Japanese banks had been re-evaluating their investment commitments in Scotland.

Senior consultant Michael Walker said: “The Japanese banks have been very active in Private Finance Initiative activity and have sought to re-price provisions should there be a ‘yes’ vote. Some will quote margins that are a bit less competitive and some have clauses.”

SMTB’s Oda added that Japanese investors had held “talks” with regards to the potential impact of Scottish independence on infrastructure projects, but he said it had not changed its lending terms. He added:
“Hopefully the situation will be stable going forward, that’s common sense for all businesses.”

A Scottish government spokesperson highlighted a study produced by EY, which stated that investors had not been deterred despite the independence debate.